1987-007-RES WHEREAS, the City Council of the City of Paris did heretofore in Resolution No. 86-099 authorize the

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!Nt MURPHY APPRAISALS .0 [C _./1 . "",ea C!.tate crrpp'taL!.eU W.T. "BILL" MURPHY ASA, IFAS, MGA, SRA and Con!.uftanh 1310 N.MAIN PLACE-SUITE D po. 80X 816 TELEPHONE 71.4-3394 November 29, 1986 PARIS, TEXAS 75410 Mr. John Buss, Director of Engineering City of Paris Box 1037 Paris, Texas 75460 Dear Mr. Buss: I submit herewith my market value appraisal report of the damages caused by the taking of a 0.49 acre subsurface utility easement at the improved site of 307.08 acres located 7 miles northeast of Paris, Texas. The purpose of my appraisal is to estimate the damages to property as the result of a taking by the City of Paris, Lamar County, Texas, in due process, and to provide a basis for just compensation. Definition of Market Value Market value is the highest price which a property will bring if exposed for sale in the open market for a reasonable time by a willing seller and sold to a willing buyer, neither being under any compulsion to act, both the seller and buyer having full knowledge of all the uses and purposes for which the property is being used and for which it is capable of being used. Definition of Just Compensation The U.S. Supreme Court case of Olson vs. United States, 292 U.S. 246, is most often cited as the authority on condemnation law, and defines just compensation as follows: "Just compensation includes all elements of value that inhere in the property, but does not exceed market value fairly determined. The sum required to be paid the owner does not depend upon the uses to which he has devoted his land, but is to be arrived at upon just consideration of all the uses for which it is suitable. The highest and most profitable use for which the property is adaptable and needed or likely to be needed in the reasonably near future is to be considered, not necessarily as the measure of value, but to the full extent that the prospect of demand for such use affects the market value while the property is privately held." Definition of Highest and Best Use Highest and best use is the most profitable likely use to which a property can be put. The opinion of such use may be based on the highest and most profitable continuous use to which the property is adapted and needed, or likely to be in damand for, in the reasonably near future. However, elements affecting value which depend upon events or a combination of occurrences, which - while within the realm of possibility - are not fairly shown to be reasonably probable, should be excluded from consideration. Also if the intended use is dependent on an uncertain act of another person, the intention cannot be considered. Highest and best use is also defined as that use of land which may reasonably be expected to produce the greatest net return to land over a given period of time; that legal use which will yield to land the highest present value, sometimes called its optimum use.